Kholoud Hussein 

Generative Artificial Intelligence (GenAI) is rapidly transforming industries worldwide, and Saudi Arabia is embracing this technological revolution with strategic vigor. Aligned with the Kingdom's Vision 2030 initiative to diversify its economy beyond oil dependence, GenAI is making significant inroads into various sectors, particularly within the private domain and the burgeoning startup ecosystem. This article explores the sectors most impacted by GenAI in Saudi Arabia, supported by recent data and insights from industry leaders, and discusses potential sectors poised for future transformation.

The Rise of GenAI in Saudi Arabia

Under the ambitious leadership of Crown Prince Mohammed bin Salman, Saudi Arabia is positioning itself as a global hub for artificial intelligence. The Kingdom's strategic initiatives, such as "Project Transcendence," aim to attract substantial investments from global tech companies to bolster domestic AI infrastructure, including data centers and startups. This aligns with the broader Vision 2030 plan to diversify the economy and reduce dependence on oil. 

The Public Investment Fund (PIF) has announced plans to launch a $40 billion fund to invest in AI, potentially partnering with venture capital firms like Andreessen Horowitz. This initiative underscores the Kingdom's commitment to establishing a robust AI ecosystem, fostering innovation, and attracting global tech leaders to its domestic market. 

Sectors Most Affected by GenAI

1. Technology Sector

The technology sector stands at the forefront of GenAI adoption in Saudi Arabia. According to research by Strategy& Middle East, the sector could see an increase in operating profit by up to SAR 15 billion by 2028 through the development and commercialization of new GenAI use cases and the growing demand for advanced hardware and infrastructure. Additionally, Saudi tech firms could streamline their research and development (R&D) capabilities, enhance solution design, and automate internal processes, potentially reducing costs by up to 30%. 

2. Media and Entertainment

The media and entertainment sector is poised to benefit significantly from GenAI. The same Strategy& report indicates that this sector could experience an increase in operating profit of up to SAR 6 billion by 2028. GenAI enables firms to develop more original Arabic content, personalize customer experiences, and improve operational capabilities. This advancement aligns with the Kingdom's national agenda to establish itself as a media and entertainment hub. 

3. Telecommunications

Telecommunications companies in Saudi Arabia are leveraging GenAI to enhance customer insights and infrastructure utilization. The adoption of GenAI could lead to an increase in operating profit of up to SAR 11 billion by 2028. By analyzing customer behavior, telecom operators can personalize campaigns and enhance cross-selling opportunities, particularly within the small and medium-sized enterprises (SME) market, projected to reach SAR 10 billion by 2028. 

4. Healthcare

The healthcare sector in Saudi Arabia is also experiencing the transformative effects of GenAI. Globally, AI is being utilized for predictive diagnostics, personalized treatment plans, and efficient patient management. In Saudi Arabia, integrating GenAI could enhance healthcare delivery, optimize resource allocation, and improve patient outcomes, aligning with the Kingdom's goals to modernize its healthcare infrastructure.

5. Finance and Banking

The finance and banking sector is transforming with the integration of GenAI. AI-driven algorithms are enhancing fraud detection, risk assessment, and customer service through chatbots and personalized financial advice. Saudi banks and financial institutions are investing in AI technologies to streamline operations, reduce costs, and offer innovative services to customers.

Impact on Startups and the Private Sector

The startup ecosystem in Saudi Arabia is rapidly evolving, with a significant focus on deep tech innovations. A report by the Ministry of Communications and Information Technology, in collaboration with King Abdullah University of Science and Technology, reveals that up to 50% of deep tech startups in the Kingdom are working on artificial intelligence and the Internet of Things (IoT). These startups have collectively secured more than $987 million in funding, reflecting a robust commitment to technological advancement.

The number of active startup investors in Saudi Arabia reached 104 in 2023, marking a 41% increase from 2018. Public funds heavily support this expansion, as the government is committed to nurturing tech startups and scale-ups. Furthermore, the number of researchers in the country has risen by 75% since 2015, with plans to expand the research infrastructure to accommodate 140,000 researchers by 2030, up from the current 20,000.

Insights from Saudi Officials and Business Leaders

Saudi officials and business leaders are vocal about the transformative potential of GenAI. Richard Attias, CEO of the Future Investment Initiative (FII) Institute, emphasizes the importance of AI in addressing global challenges and fostering inclusive investments. He highlights the role of AI in driving innovation and efficiency across various sectors, aligning with the Kingdom's vision for economic diversification. 

The Kingdom's strategic collaborations, such as the partnership between Aramco and Groq to build the world's largest AI inference data center, underscore the commitment to establishing a robust AI infrastructure. These initiatives are part of a broader strategy to position Saudi Arabia as a leader in AI investment, complementing the country's oil wealth and ensuring relevance in the post-oil era. 

Potential Sectors for Future GenAI Impact

Beyond the sectors currently experiencing significant GenAI integration, several other industries in Saudi Arabia are poised for transformation in the near future. As the Kingdom continues its AI-driven economic diversification, the following sectors are expected to see increasing disruption and opportunities for growth.

1. Automotive Industry

Saudi Arabia’s ambitious plans to establish a homegrown automotive industry, with initiatives such as Ceer Motors, will likely benefit from GenAI. Generative AI can revolutionize vehicle design, predictive maintenance, and supply chain optimization.

• Generative Design: AI can optimize vehicle components for strength, weight, and fuel efficiency, improving performance and reducing material waste.
• Smart Manufacturing: AI-powered automation in assembly lines can enhance precision and efficiency while lowering production costs.
• Autonomous Vehicles: As part of the Kingdom’s Vision 2030 Smart City initiatives (such as NEOM and The Line), GenAI will play a key role in self-driving technology, traffic management, and mobility solutions.

With the Saudi government investing billions into electric and autonomous vehicles, this sector is primed for AI-driven innovation.

2. Education and E-Learning

Saudi Arabia has been actively integrating AI into education, with a strong push toward personalized learning experiences and AI-powered content generation.

• Adaptive Learning Platforms: AI can tailor lessons to individual student needs, ensuring better retention and engagement.
• Automated Content Generation: GenAI tools can develop course materials, summarize lectures, and even generate interactive quizzes.
• AI-powered tutoring: Chatbots and AI tutors can provide 24/7 academic support to students across various disciplines.

With the Kingdom investing heavily in digital education platforms, GenAI could redefine the way students and professionals learn in Saudi Arabia.

3. Real Estate and Urban Development

The Saudi real estate sector is undergoing rapid expansion, driven by mega-projects like NEOM, Qiddiya, and the Red Sea Project. AI is expected to streamline construction planning, optimize resource allocation, and enhance property management.

• AI-Generated Architectural Designs: Generative AI can automate building designs, improving efficiency and reducing project timelines.
• Smart Cities: AI-driven traffic control, energy management, and security systems will play a crucial role in urban development.
• Property Valuation and Market Predictions: AI-powered analytics can provide accurate real estate forecasts, assisting investors and developers in making informed decisions.

As Saudi Arabia aims to create futuristic, AI-driven urban environments, GenAI will be integral to shaping the Kingdom’s real estate landscape.

4. Retail and E-Commerce

Saudi Arabia’s booming e-commerce market, projected to reach $20 billion by 2025, is already leveraging AI for customer experience enhancement and supply chain optimization.

• Hyper-Personalized Shopping: AI can analyze customer behavior and generate real-time personalized recommendations.
• AI-powered chatbots: Virtual assistants can handle customer inquiries, recommend products, and process transactions, improving efficiency.
• Inventory and Logistics Optimization: AI models can predict demand trends, automate restocking, and reduce waste, making supply chains more efficient.

With Saudi startups and enterprises investing heavily in AI-driven retail solutions, the sector is poised for even greater transformation in the near future.

5. Energy and Sustainability

As Saudi Arabia transitions toward renewable energy and sustainability goals, GenAI will play a pivotal role in optimizing energy management and reducing carbon footprints.

• AI-Optimized Power Grids: Machine learning algorithms can predict energy demand, allowing for efficient power distribution.
• Predictive Maintenance for Renewable Energy: AI can monitor and predict failures in solar farms, wind turbines, and smart grids, reducing downtime and maintenance costs.
• Sustainable Resource Allocation: AI-driven simulations can optimize water and energy usage across industrial and residential sectors.

Saudi Arabia’s commitment to green energy through projects like the $5 billion NEOM Green Hydrogen plant highlights GenAI's crucial role in the energy sector.

Finally, Generative AI is fundamentally reshaping industries across Saudi Arabia, accelerating economic diversification and boosting productivity. While sectors like technology, media, telecommunications, healthcare, and finance have already witnessed significant AI integration, emerging fields like automotive, education, real estate, retail, and energy are set to experience profound transformations.

With the Saudi government investing in AI research, local startups, and global partnerships, the Kingdom is on track to become a global AI hub. However, challenges remain in terms of regulation, talent development, and infrastructure, which must be addressed to fully capitalize on GenAI’s potential.

As Saudi Arabia continues its digital revolution, AI-powered industries will drive innovation, economic growth, and long-term sustainability, positioning the Kingdom as a leader in the global AI economy.

Ghada Ismail

Startups are built on ideas, but they survive and thrive on insights. In Saudi Arabia’s fast-changing market, where digital transformation is reshaping industries and consumer behavior is evolving rapidly, listening to customer feedback can be the difference between winning and losing.

Imagine pouring months into developing what you believe is a groundbreaking product, only to find that customers don’t see the value. It’s a common pitfall, especially when founders get so attached to their vision that they overlook what their audience is really asking for. Ignoring feedback isn’t just a missed opportunity, it’s rather a direct path to failure.

Why Ignoring Feedback Is Risky

The numbers paint a clear picture:

• According to CB Insights, 14% of startup failures are linked to ignoring customer needs.
• In Saudi Arabia’s growing startup scene, 60% of struggling startups reported a disconnect between their product and customer expectations (MAGNiTT, 2023).

When startups tune out feedback, they risk creating solutions that fail to solve real problems. Worse yet, they may alienate early adopters, the very people willing to give honest insights that could shape a stronger product.

Common Mistakes Startups Make

• Dismissing Negative Feedback: It's easy to brush off complaints as isolated incidents, but patterns in criticism often signal deeper flaws.
• Failing to Act on Feedback: Gathering insights without following through frustrates customers. HubSpot reports that 42% of customers disengage from businesses that ignore their concerns. 
• Assuming Silence Means Satisfaction: Just because customers aren’t complaining doesn’t mean they’re happy. Many dissatisfied users simply leave without sharing their frustrations.
• Relying Solely on Internal Assumptions: Building a product based on what founders think customers want instead of gathering direct feedback often leads to misalignment.
• Ignoring Cultural Preferences: For startups in Saudi Arabia, failing to account for local preferences, language, and traditions can alienate key customer segments.

Building a Strong Feedback System

To stay in tune with customer needs, startups should:

• Develop clear processes for collecting and analyzing feedback.
• Engage through customer support channels, surveys, and social media, especially vital in Saudi Arabia, where social media penetration exceeds 80% according to Statista.
• Show customers that their voices matter by acting on feedback and openly sharing improvements inspired by their input.

Wrapping things up…

Startups that truly listen to their customers are the ones that adapt, evolve, and thrive. Saudi Arabia’s startup landscape is competitive, and winning over customers takes more than just a strong product, it requires building trust. By responding to feedback and making users feel heard, startups gain more than insights; they gain advocates who will champion their success.

On the other hand, ignoring feedback is like driving blind—risky, reckless, and often fatal for businesses. Embracing customer insights isn’t just smart, it makes you survive the first year’s curse. 

Stay tuned for the final episode in this series, where we'll explore the last two major reasons why startups struggle  and how to overcome them with key insights to help founders navigate their crucial first year.

Kholoud Hussein 

In today's data-driven business landscape, the ability to transform raw data into actionable insights has become a cornerstone of success, particularly for startups aiming to navigate competitive markets. Data analytics services play a pivotal role in this transformation, enabling organizations to make informed decisions, optimize operations, and drive growth. In Saudi Arabia, a nation undergoing rapid economic diversification under Vision 2030, the integration of data analytics is proving instrumental in fostering innovation and entrepreneurship.

The Power of Data Analytics in Modern Business

Data analytics involves examining raw data to uncover patterns, correlations, and trends that inform strategic decision-making. By applying statistical and computational methods, organizations can interpret complex datasets, leading to a deeper understanding of business processes, customer behaviors, and market dynamics. This analytical approach not only enhances operational efficiency but also fosters innovation by identifying new opportunities and optimizing strategies. 

Data Analytics: A Catalyst for Startup Success

For startups, data analytics is not just a tool but a critical asset that can significantly influence their trajectory. Here's how data analytics services are transforming raw information into actionable insights:

1. Informed Decision-Making

Startups often operate with limited resources, making precise decision-making crucial. Data analytics provides empirical evidence that guides strategic choices, reducing reliance on intuition and increasing the likelihood of success. By analyzing market trends, customer feedback, and operational metrics, startups can make data-driven decisions that align with their business objectives. 

2. Enhancing Customer Experiences

Understanding customer behavior is vital for startups aiming to establish a loyal customer base. Data analytics enables the examination of customer interactions, preferences, and feedback, allowing startups to tailor their products or services to meet customer needs effectively. This personalization fosters customer satisfaction and loyalty, which are essential for long-term success.

3. Operational Efficiency

Identifying inefficiencies within operations can be challenging without proper analysis. Data analytics helps startups pinpoint areas where resources may be underutilized or processes can be streamlined, leading to cost reductions and improved productivity. For instance, analyzing supply chain data can reveal bottlenecks, enabling startups to implement solutions that ensure smoother operations. 

4. Risk Mitigation

Startups face various risks, from market volatility to operational challenges. Data analytics facilitates risk assessment by identifying potential issues before they escalate. By monitoring key performance indicators and market signals, startups can proactively address risks, ensuring business continuity and resilience. 

Data Analytics in Saudi Arabia's Startup Ecosystem

Saudi Arabia's commitment to fostering a robust startup ecosystem is evident through its investments in technology and innovation. The data analytics sector in the Kingdom is experiencing significant growth, driven by the expanding IT infrastructure and a heightened focus on evidence-based decision-making. Experts project that the sector will grow at a compound annual growth rate (CAGR) of 30.04% from 2024 to 2032, indicating a promising future for data-driven enterprises. 

Mozn, a Saudi-based startup, exemplifies the successful integration of data analytics in business operations. Specializing in artificial intelligence and data analytics, Mozn provides solutions that help organizations make informed decisions. By leveraging data analytics, Mozn enables businesses to enhance efficiency and drive growth, showcasing the transformative potential of data-driven strategies. 

Insights from Saudi Business Leaders

Saudi business owners recognize the value of data analytics in achieving business objectives. A prominent Saudi entrepreneur noted, "Incorporating data analytics into our operations has been a game-changer. It has allowed us to understand our customers better and streamline our processes, leading to increased efficiency and profitability."

Another business leader highlighted, "The insights gained from data analytics have been instrumental in guiding our strategic decisions. It has given us a competitive edge in the market, enabling us to anticipate trends and adapt accordingly."

Challenges and Considerations

While the benefits of data analytics are substantial, startups may encounter challenges in its implementation:

• Data Quality: Ensuring the accuracy and completeness of data is essential for reliable analysis.
• Resource Constraints: Implementing data analytics requires investment in technology and skilled personnel, which may be challenging for startups with limited resources.
• Data Privacy: Adhering to data protection regulations is crucial to maintain customer trust and avoid legal repercussions.

Addressing these challenges necessitates a strategic approach, including investing in quality data management systems, training staff, and establishing robust data governance policies.

To conclude, data analytics services are indispensable in transforming raw information into actionable insights, particularly for startups striving for success in competitive markets. In Saudi Arabia, the integration of data analytics aligns with the nation's Vision 2030 goals, fostering innovation and economic diversification. By leveraging data analytics, startups can make informed decisions, enhance customer experiences, optimize operations, and mitigate risks, thereby establishing a strong foundation for sustainable growth.

As we continue our exploration of the building blocks of startup success, our next discussion will delve into the role of educational platforms and skill-building initiatives in empowering entrepreneurs. We will examine how access to knowledge and continuous learning contribute to entrepreneurial success, particularly in the context of Saudi Arabia's evolving business landscape.

Ghada Ismail

A groundbreaking idea, strong financial backing, and an eager market may seem like the perfect formula for startup success. Yet beneath these promising elements lies a crucial factor that determines whether a startup thrives or fails: the people driving it.

Leadership and team dynamics are the unseen forces that shape every decision, process, and relationship within a company. Founders who build cohesive teams and embrace effective leadership practices create environments where innovation flourishes and employees remain motivated. Conversely, startups plagued by leadership conflicts, misaligned visions, or toxic work cultures risk collapse even when their products or services show great potential.

How Leadership and Team Issues Emerge

Problems often arise when founders struggle to define roles, align visions, or manage conflicts. Leadership inexperience can lead to poor decision-making, unclear communication, or a failure to set realistic goals. Similarly, weak team cohesion may result in internal friction, disengagement, or frequent turnover.

Research by CB Insights shows that 23% of startups fail due to team issues, including leadership conflicts and skill gaps. A startup with two co-founders, for example, may face tensions if one envisions aggressive growth while the other prefers a more conservative pace. Without alignment, this disconnect can ripple through the entire company, affecting strategic direction and morale.

A study by Harvard Business Review found that startups with clearly defined leadership roles and well-structured teams are 2.3 times more likely to scale successfully. Meanwhile, fragmented teams often suffer from duplicated efforts, miscommunication, and wasted resources, ultimately slowing growth.

Key Strategies to Build a Stronger Leadership and Team Foundation

1. Establish Clear Roles and Responsibilities: Define leadership roles early and ensure each leader understands their scope. This reduces overlap and confusion. Founders should align on decision-making authority and areas of accountability to minimize power struggles.
2. Prioritize Communication: Regular team check-ins, open dialogue, and transparent decision-making help prevent misunderstandings and keep teams aligned. Successful startups often implement structured communication routines such as weekly stand-ups, performance reviews, and team-wide updates to ensure alignment.
3. Invest in Leadership Development: Even experienced founders can benefit from mentorship, coaching, or management training to strengthen their leadership skills. Programs like Endeavor Saudi Arabia provide guidance to founders, helping them refine their leadership approach.
4. Build a Collaborative Culture: Encourage teamwork through shared goals, team-building activities, and a supportive environment where ideas are valued. Studies by the Institute for Corporate Productivity (i4cp) have shown that companies that actively promote collaboration are five times more likely to be high-performing.
5. Address Conflict Early: Tensions are inevitable, but unresolved disputes can fester. Creating a structured process for resolving conflicts ensures issues are managed before they escalate. Conflict resolution frameworks like the "Radical Candor" approach encourage open yet empathetic conversations to resolve friction productively.

The Radical Candor is a communication framework developed by Kim Scott, designed to help leaders give feedback that is both direct and caring. The concept encourages managers to challenge their team members while simultaneously showing they care about them personally. The framework is built on two key dimensions:

• Care Personally: Building strong relationships by genuinely caring about your colleagues as individuals.
• Challenge Directly: Offering clear, honest, and sometimes tough feedback that helps people improve.

The Power of Strong Leadership and Teamwork

Startups that cultivate clear leadership structures and foster a united team are far better equipped to handle the pressures of early-stage growth. Research by McKinsey & Company shows that companies with effective leadership teams are 1.9 times more likely to achieve above-average financial performance, emphasizing the value of well-managed teams.

In the unpredictable world of entrepreneurship, strong leadership, and cohesive teams are not just assets, they're essential for survival. Up next, we'll explore how ignoring customer feedback can silently sabotage even the most promising startups. Stay Tuned!

Kholoud Hussein 

In the rapidly evolving landscape of technology, Artificial Intelligence (AI) and Machine Learning (ML) have emerged as pivotal forces driving innovation and efficiency. Integrating these technologies is no longer a luxury for tech startups but a necessity to remain competitive and agile. This installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," explores the significance of AI and ML partnerships for tech startups, with a special focus on the burgeoning ecosystem in Saudi Arabia.

The Imperative of AI and ML for Tech Startups

AI and ML technologies enable startups to analyze vast amounts of data, automate processes, and deliver personalized customer experiences. According to a report by Exploding Topics, approximately 35% of companies have adopted AI services to address labor shortages, and global AI adoption is projected to grow at a compound annual growth rate (CAGR) of 36.6% between 2024 and 2030. 

The benefits of incorporating AI and ML into business operations are manifold:

• Enhanced Decision-Making: AI-driven analytics provide startups with actionable insights, facilitating informed decision-making and strategic planning.
• Operational Efficiency: Automation of routine tasks through AI reduces operational costs and minimizes human error, leading to increased productivity.
• Customer Engagement: Personalized recommendations and services powered by ML algorithms enhance customer satisfaction and loyalty.

AI and ML Adoption Among Startups

The adoption of AI and ML is particularly pronounced among startups aiming to disrupt traditional business models. A McKinsey Global Survey indicates that organizations are beginning to implement changes designed to generate future value from generative AI, with large companies leading the way.

In the United States, AI adoption rates vary by company size. Data from the Bipartisan Policy Center reveals that firms with 250 or more employees have an adoption rate of 7.2%, while those with one to four employees have a rate of 5.5%. This trend underscores that both large enterprises and nimble startups recognize the value of AI integration.

The Saudi Arabian Context

Saudi Arabia is undergoing a technological renaissance, with AI and ML at the forefront of its Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. The Kingdom's deep tech startup ecosystem is thriving, with half of these startups focusing on AI and the Internet of Things (IoT), reflecting a robust commitment to technological advancement.

Several Saudi startups have emerged as leaders in the AI and ML space:

• Mozn: Specializing in AI development and IT strategy consulting, Mozn operates in Riyadh and London, offering solutions that enhance business intelligence and operational efficiency. 
• Lucidya: This startup focuses on AI-driven customer experience management, enabling businesses to analyze and improve customer interactions across various platforms.
• Intelmatix: Providing AI solutions for decision intelligence, Intelmatix assists organizations in making data-driven decisions to optimize performance.

The Saudi Data and Artificial Intelligence Authority (SDAIA) plays a pivotal role in fostering entrepreneurship in data and AI, contributing to the growth of a knowledge-based economy. 

Insights from Saudi Business Leaders

Saudi business leaders recognize the transformative potential of AI and ML. For instance, Cognite, an industrial software firm backed by Saudi Aramco, has expanded its AI services to India, aiming to collaborate with major conglomerates and invest significantly in the region. This move underscores the strategic importance placed on AI by leading Saudi enterprises.

Furthermore, vminds.ai, a platform developed by VEEM Solutions, integrates over 150 AI tools from global providers, offering services like generative AI for text, images, video, music, AI-powered automation, and speech processing. The startup has secured six-figure pre-seed funding and has been incubated at Saudi Aramco’s Wa’ed Entrepreneurship Centre and the Ministry of Communications and Information Technology’s Tech Champions Accelerator, demonstrating strong ecosystem support. 

Challenges and Considerations

While the integration of AI and ML offers numerous benefits, startups must navigate certain challenges:

• Resource Constraints: Developing and implementing AI solutions can be resource-intensive, requiring specialized talent and infrastructure.
• Data Quality: AI systems rely on high-quality data; ensuring data accuracy and relevance is crucial for effective outcomes.
• Ethical Implications: Startups must consider the ethical aspects of AI deployment, including data privacy and algorithmic bias.

Finally, AI and ML are indispensable partners for tech startups aiming to innovate and thrive in a competitive landscape. The global trend toward AI adoption is mirrored in Saudi Arabia, where a vibrant ecosystem supports the growth of AI-focused startups. By embracing these technologies, startups can enhance decision-making, streamline operations, and deliver superior customer experiences, aligning with the Kingdom's Vision 2030 goals.

In the next installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore the role of Data Analytics Services in transforming raw information into actionable insights. Understanding how to harness data effectively is crucial for startups seeking to make informed decisions and drive strategic growth.

Stay tuned as we delve into how data analytics can empower startups to unlock new opportunities and achieve sustained success.

Noha Gad

Saudi Arabia’s information technology (IT) sector has witnessed significant growth since the launch of Vision 2030. The Kingdom’s continuous efforts to shore up its IT infrastructure have positioned the country favorably on international indices, ranking it second among G20 countries on the UN International Telecommunication Union’s ICT Development Index.

According to a recent report by AstroLabs, the IT sector in Saudi Arabia reached over $50.6 billion as of 2024, contributing 4.1% of the national gross domestic product (GDP).

Bidding on IT projects in the Kingdom presents a significant opportunity for businesses looking to tap into the rapidly growing digital economy in Saudi Arabia. With the government's strong focus on digital transformation under Vision 2030, numerous public and private sector projects are available across various domains, including cloud computing, cybersecurity, smart cities, AI, fintech, and e-government solutions. 

Government-led initiatives, such as the Etimad portal for public tenders, provide structured bidding opportunities, while major private sector players and mega-projects like NEOM and the Red Sea Project are driving demand for cutting-edge IT solutions.

Understanding the bidding process, regulatory requirements, and best practices is essential for companies looking to compete effectively and secure contracts in this dynamic market. In this blog, we will explore the key steps needed for successful bidding on IT projects in Saudi Arabia.

Step 1: Pre-registration requirements (2 to 3 weeks)

In this stage, you need to obtain a valid Commercial Registration (CR) certificate and secure a license from the Ministry of Investment (MISA). You also have to acquire a Saudization Certificate to verify your company's compliance with Saudization regulations, in addition to having a valid certificate from the General Organization for Social Insurance (GOSI).

The next steps include opening and maintaining active bank accounts with local banks and preparing all other necessary legal documents, including Chamber of Commerce membership, Zakat certificate, VAT registration certificate, supplier classification certificate (if required), and SMEs Monsha’at certificate (optional for SMEs).

Step 2: Register on the Etimad Portal (5 to 6 weeks)

The Etimad Platform is an official electronic procurement platform launched by the Ministry of Finance to streamline government tenders and financial services. It serves as the central hub for public sector procurement, enabling businesses to view, bid on, and manage government contracts efficiently.

After completing all mandatory registration on theEtimad platform, you will need to upload all required documents, such as CR, GOSI, and bank details certificates. 

This stage also includes creating the company stamp, the Ministry of Law registration, national address registration, GOSI registration, and GAZT & VAT registration.

Step 3: Preparing for bidding (2 to 3 weeks)

First, you will need to register on several portals including, Absher, Mudad, Muqeem, and Qiwa. Then, you can search for available tenders, ensuring compliance with Saudi labor laws, Saudization policies, and financial regulations.

The Etimad platform is your perfect choice for searching for public-sector IT projects. Meanwhile, networking with key stakeholders and industry events can help identify upcoming opportunities in the private sector.

Building a Competitive Proposal

A strong proposal should address three key areas:

1. Technical Requirements. This includes project scope, deliverables, timelines, expertise, certifications, and previous experience.
2. Financial competitiveness. You have to provide detailed cost breakdowns to ensure transparency while balancing competitive pricing with profitability.
3. Compliance and Documentation. Ensure all legal and financial documents are in place, submit proof of experience, and provide partnership agreements if collaborating with local firms. 

Finally, bidding on IT projects in Saudi Arabia presents a wealth of opportunities, but success requires a solid understanding of the process, compliance with regulations, and a well-prepared proposal. In the next blog, we will explore key strategies to increase your chances of winning an IT project bid in Saudi Arabia, including tips on pricing, negotiation, and common pitfalls to avoid.

Mohamed Ramzy

As the Middle East undergoes rapid technological transformations, Huawei Cloud emerged as a key player in the cloud computing sector, offering over 200 diverse cloud services—from data analysis to artificial intelligence (AI) tools—that cater to various sectors such as e-commerce, financial services, healthcare, and retail.

The Chinese company focuses on expanding its business in Egypt and Saudi Arabia by investing in technological infrastructure and establishing strategic partnerships with various public and private entities.

Sharikat Mubasher held an exclusive interview with Jo Xu, CEO of Huawei Cloud Egypt, to learn more about the company’s expansions in Egypt and Saudi Arabia amidst the significant transformation of the technological landscape in both countries and the fierce competition with global tech giants.

First, how do you see Huawei Cloud’s journey in the Egyptian market so far? 

We believe that the Egyptian market has very promising opportunities; therefore, we decided to invest heavily in it. In May 2024, Huawei Cloud officially launched its operations in Egypt. During this short period, we have established effective partnerships with key players in the market, including fintech startups and various organizations seeking our solutions.

What are the key projects that Huawei Cloud launched in Egypt?

From day one, we have strived to replicate the experience we delivered in Saudi Arabia here in Egypt. Thus, we launched our Huawei Cloud Region to serve as a central hub for our services in the Middle East and North Africa (MENA) region.

What are the most prominent services that Huawei Cloud offers through the Cloud Region? 

The Huawei Cloud Region provides innovative technology solutions to support clients, leveraging generative AI (Gen AI). It develops new business models with reduced costs and increased speed, helping e-commerce companies keep pace with the growing demand.

Additionally, the Cloud Region enables companies to enhance customer experience by leveraging cutting-edge technologies such as virtual reality (VR), and stay abreast of the latest technology advancements to grow.   

Speaking about the Saudi market, how do you see it at the current time?

Saudi Arabia is one of the most promising markets in the region. It has tremendous potential to grow and thrive, backed by the government’s strong support for digital transformation, aligning with Vision 2030 which aims to position the Kingdom as a strategic hub for technology. 

Saudi Arabia was one of the first markets where Huawei Cloud established a presence. Can you tell us more about this? 

Yes, Saudi Arabia was one of the first markets where Huawei Cloud launched its operations and we have a robust presence there. We target expanding our business, enhancing services, and strengthening our partnerships with different public and private entities. 

In 2022, we announced building a specialized cloud computing region in Saudi Arabia to provide advanced, secure cloud services that streamline the business of local companies, organizations, and government authorities in the Kingdom and the wider region. Huawei Cloud officially launched its operations in Saudi Arabia in February 2023, during LEAP 2023.

What about the projects that the company has implemented in Saudi Arabia?

Our investments are centered around data. So far, we have built three data centers in Riyadh, capitalizing on the huge support that the Kingdom provides through its various agencies to global multinational companies.

What are Huawei Cloud's key areas of focus for the Saudi market within the upcoming period?

Huawei Cloud focuses on expanding its business in all countries where it operates. Over the next five years, we target supporting more than 2,000 startups in Saudi Arabia, in alignment with Vision 2030.

The global AI landscape is undergoing significant advancements nowadays. How is Huawei Cloud shaping the future of this sector?

At Huawei Cloud, we provide more than 200 diverse cloud services and a wide range of AI-powered solutions. Additionally, our services include data analysis, data storage, and developing AI platforms that streamline business operations for companies and organizations.

Translation: Noha Gad

Kholoud Hussein 

Saudi Arabia’s giga-projects—Neom, The Line, and Qiddiya—are redefining the Kingdom’s economic landscape, aligning with Vision 2030’s goal of diversifying the economy and reducing reliance on oil. While these projects promise futuristic urban planning, cutting-edge technology, and world-class tourism, they also create unprecedented opportunities for startups and SMEs.

Saudi entrepreneurs are tapping into these mega-developments to provide innovative solutions in smart city infrastructure, entertainment, fintech, logistics, and sustainability. This article explores how these projects are fostering startup growth, the role of Saudi business leaders in seizing these opportunities, and the government’s efforts in empowering entrepreneurs.

1. Neom and The Line: A Smart City Ecosystem for Innovation

Neom is a $500 billion mega-city that is poised to become a global hub for technology, AI, and green energy. One of its most ambitious projects is The Line, a 170-kilometer-long, car-free smart city that integrates AI-driven automation, renewable energy, and futuristic urban mobility.

For startups, Neom represents a testing ground for innovation in AI, IoT, and sustainable infrastructure. Entrepreneurs in sectors such as autonomous transportation, AI-driven governance, and urban sustainability can leverage Neom’s open innovation framework to develop and scale their businesses.

Startup Perspective

Sultan Alasmi, CEO of Zid, an e-commerce enabler, highlights the immense potential of Neom for startups: "Saudi Arabia’s giga-projects, especially Neom, offer a once-in-a-lifetime opportunity for startups to develop solutions that integrate with smart city frameworks. Entrepreneurs who innovate in AI-driven commerce, logistics, and urban tech will be at the forefront of the new economy."

As Neom continues to attract global investment, Saudi startups specializing in green energy, sustainable construction, and AI-driven automation will be key players in its long-term development.

2. Qiddiya: A Billion-Dollar Playground for Tourism and Entertainment Startups

With a projected 17 million annual visitors by 2030, Qiddiya is Saudi Arabia’s answer to Dubai’s entertainment sector. Spanning 334 square kilometers, Qiddiya will feature theme parks, motorsports, esports, live performances, and cultural experiences.

Startups in hospitality, ticketing, VR-based entertainment, and travel tech stand to gain significantly from this multi-billion-dollar project. Saudi Arabia is positioning itself as a regional hub for entertainment, and entrepreneurs who capitalize on immersive experiences, AI-driven tourism services, and fintech solutions for travel will thrive.

Startup Perspective

Ebrahim Al-Jassim, founder of Ninja, a quick commerce startup, sees entertainment logistics and hyper-personalized services as a massive growth area: "Qiddiya is more than an entertainment hub; it’s a new ecosystem for hospitality, logistics, and smart payments. Startups that can enhance visitor experiences with AI, VR, and seamless payment solutions will dominate this space."

With Saudi Arabia investing over $8 billion in the entertainment sector, Qiddiya offers massive potential for travel tech startups, luxury tourism brands, and digital payment innovators.

3. Opportunities in Smart Cities, Tourism, and Infrastructure

Smart Cities & Infrastructure

Neom and The Line are pioneering AI-driven governance, hyper-connectivity, and zero-emission infrastructure. Startups that specialize in energy-efficient buildings, smart grid technologies, and AI-based security solutions can integrate their products into these developments. "Our startup, Retailo Technologies, is already working on logistics solutions that cater to the evolving needs of Saudi Arabia’s giga-projects. Supply chain innovations will be crucial in supporting large-scale developments like Neom and The Line," according to Abdulaziz Hadhrawi, Founder of Retailo Technologies. 

Tourism & Hospitality Tech

Saudi Arabia’s plan to attract 100 million tourists by 2030 means massive investments in luxury tourism, wellness retreats, and eco-tourism startups. Entrepreneurs in AI-driven personalized travel experiences, sustainable hospitality, and VR tourism can tap into this market.

Khaled Abou Kassem, Co-founder of AlGooru, said: "The Saudi tourism sector is experiencing rapid growth. Startups that integrate AI, blockchain-based booking systems, and immersive digital experiences will be ahead of the curve."
 

4. Government Policies Supporting Saudi Entrepreneurs

Investment Incentives

The Ministry of Investment of Saudi Arabia (MISA) provides a 100% foreign ownership license for startups setting up in SEZs (Special Economic Zones). This policy has led to a 65% increase in foreign startup investments in 2024.

Special Economic Zones (SEZs) Provide Tax-Free & Duty-Free Benefits: SEZs like King Abdullah Economic City (KAEC) and Neom's Industrial Zone are startup-friendly hubs that offer tax incentives, regulatory benefits, and easy business incorporation.

Venture Capital & Funding for Startups

Saudi Arabia has witnessed a record $3.8 billion in venture capital funding in 2024, with much of it directed towards startups in logistics, fintech, AI, and green energy. Mohammed Aldossary, Co-founder of Sary, stated: "Saudi Arabia’s startup scene is evolving rapidly, thanks to government-backed funding initiatives like Monsha’at and the Saudi Venture Capital Company (SVC). Access to capital is better than ever for ambitious entrepreneurs."
 

5. Overcoming Challenges: What Startups Need to Consider

While Saudi giga-projects present incredible opportunities, startups must navigate challenges such as:

•  Regulatory Compliance: Large-scale projects require businesses to meet international quality and sustainability standards.
• Talent Acquisition: The demand for AI specialists, sustainable engineers, and fintech experts is outpacing local supply.
• Competition from Global Corporations: Startups must differentiate their solutions to compete against established multinational firms.

Advice from Saudi Startup Leaders

Janardan Dalmia, CEO of Trukkin, said: "Startups must move fast, network aggressively, and seek partnerships with giga-project stakeholders. Neom and Qiddiya won’t wait for entrepreneurs who aren’t ready to scale."
 

In the same vein, Hala Zahran, Lead for Arab Bank Accelerator, commented: "Government-backed accelerators like the Saudi Industrial Development Fund (SIDF) and PIF’s investment arms are creating a world-class startup ecosystem. But to succeed, founders must be willing to adapt quickly to regulatory and business changes."
 

The Future of Saudi Startups in Giga-Projects

Saudi Arabia’s giga-projects are not just urban developments—they are catalysts for economic diversification and technological innovation. As Neom, The Line, and Qiddiya continue to take shape, startups and SMEs will play a pivotal role in shaping the future economy.

For entrepreneurs willing to innovate, collaborate, and scale, the Saudi startup ecosystem is ripe with opportunity. Whether in AI-driven smart cities, fintech for tourism, or green energy infrastructure, the future belongs to those who seize it now.

Ghada Ismail

Startups are often launched with bold ideas and ambitious goals, but even the most innovative ventures can falter if their operations descend into chaos. While founders tend to focus on securing funding, building products, or acquiring customers, it's often poor internal structure that quietly unravels their progress. Disorganized workflows, unclear roles, and neglected processes can accumulate, turning a promising startup into a stalled venture.

Many founders underestimate how quickly disorganization can drain resources and hinder growth. Instead of actively scaling, teams get stuck firefighting; fixing errors, resolving conflicts, and scrambling to meet deadlines. The result? A business weighed down by inefficiencies and costly mistakes.

The Hidden Threat of Operational Chaos

Startups often fall into disarray as teams grow, tasks multiply, and founders struggle to manage competing priorities. Without clear processes in place, confusion thrives. Missed deadlines, duplicated efforts, and communication breakdowns become routine, making it hard to focus on growth.

One example is a Saudi-based e-commerce startup that saw rapid early traction but struggled to keep up with order fulfillment. Inventory errors piled up, customer complaints soared, and the team spent more time fixing mistakes than scaling the business. The startup ultimately pivoted to a more streamlined logistics model, but not before losing key partnerships and valuable time.

Operational chaos doesn’t always start with obvious missteps. It often creeps in quietly when founders assume their initial structure can handle ongoing growth. Over time, small inefficiencies compound, turning what seemed like manageable issues into major roadblocks.

Building Operational Resilience

To avoid this fate, founders can adopt several strategies:

1. Establish Clear Roles and Responsibilities: Define who owns what. When teams understand their duties, accountability improves, and tasks don’t fall through the cracks.
2. Adopt Project Management Tools: Platforms like Asana, Trello, or Clickup can centralize tasks, deadlines, and updates, improving visibility across teams.
3. Document Key Processes: Writing down essential workflows, from onboarding to customer support, ensures consistency and clarity, especially during team expansion.
4. Prioritize Communication: Regular check-ins, clear meeting agendas, and centralized chat tools like Slack or Microsoft Teams help minimize miscommunication.
5. Embrace Automation: Automating repetitive tasks, like invoicing or customer follow-ups, reduces manual errors and frees up time for strategic decisions.
6. Monitor Key Metrics: Tracking operational performance such as order accuracy, customer response times, or project deadlines can reveal early warning signs of disorganization.

A Balanced Approach

Startups thrive when they combine structure with flexibility. Strong operational foundations create the stability needed for creativity and growth to flourish. By putting the right systems in place early on, founders can avoid the pitfalls of chaotic workflows and build a team that works smarter, not harder. The startups that survive and thrive are often the ones that turn operational discipline into a powerful advantage.

Next up in this series: Leadership and Team Issues — The Human Factor in Startup Survival.

Kholoud Hussein 

In the intricate journey of building a successful startup, mentorship networks emerge as indispensable pillars, offering guidance, support, and invaluable insights. This installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," delves into the profound significance of mentorship networks in steering startups toward success, bolstered by recent statistics and perspectives from Saudi business leaders.

The Pivotal Role of Mentorship in Startup Success

Mentorship transcends traditional advisory roles, fostering relationships where experienced individuals impart knowledge, skills, and wisdom to burgeoning entrepreneurs. This dynamic is crucial for startups navigating the complexities of business landscapes. According to a study highlighted by Entrepreneur, a staggering 93% of startups acknowledge that mentorship significantly influences their success. 

The advantages of mentorship are multifaceted:

• Enhanced Survival Rates: Data from the UPS Store reveals that 70% of small businesses receiving mentoring endure beyond five years, doubling the survival rate of non-mentored counterparts.
• Accelerated Growth: Mentored businesses often experience swifter growth trajectories, attributed to strategic guidance and informed decision-making.
• Improved Productivity and Profitability: Research from Guider AI indicates that 70% of businesses report increased productivity, and 55% observe profit enhancements due to mentoring. 

Mentorship: A Catalyst in the Saudi Startup Ecosystem

Saudi Arabia's entrepreneurial landscape has undergone a remarkable transformation, with mentorship playing a pivotal role in this evolution. Initiatives such as Techstars Founder Catalyst have introduced mentorship programs to support Saudi entrepreneurs. 

The Kingdom's commitment to mentorship is further exemplified by its Vision 2030 initiative, which emphasizes empowering women and youth as cornerstones for sustainable growth. Crown Prince Mohammed bin Salman stated, "Empowering women and young people are two main cornerstones for achieving sustainable growth," underscoring the nation's dedication to inclusive development. 

Insights from Saudi Business Leaders

Saudi entrepreneurs recognize the transformative power of mentorship. Sharique Javaid, reflecting on his experience with his mentor in Riyadh, remarked on the enduring inspiration and guidance that mentorship provides. 

Such testimonials highlight the profound impact of mentorship on personal and professional development within the Saudi startup ecosystem.

The Reciprocal Nature of Mentorship

Mentorship is a symbiotic relationship benefiting both mentors and mentees. Engaging with startup founders allows mentors to refine their skills, expand professional networks, and gain fresh perspectives. This reciprocal value fosters a culture of continuous learning and innovation. 

To conclude, mentorship networks are instrumental in guiding startups toward success. They enhance survival rates, accelerate growth, and contribute to economic development. In Saudi Arabia, mentorship is a cornerstone of the burgeoning entrepreneurial ecosystem, aligning with national visions for sustainable growth. As startups continue to emerge, fostering robust mentorship networks will be crucial in navigating challenges and seizing opportunities.

In the forthcoming installment of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," we will explore the integration of AI and machine learning partners in tech startups. These technologies are revolutionizing industries, and understanding their application is vital for startups aiming to innovate and lead in their respective fields.

Stay tuned as we delve into how AI and machine learning collaborations can propel tech startups to new heights, driving efficiency, innovation, and competitive advantage.

Noha Gad

A valuation is a fundamental metric that reflects the company’s current and future potential. It serves as a crucial tool for financial planning, strategic decision-making, and interactions with investors, employees, and other stakeholders.

Valuing a company goes beyond simple revenue figures and considers a range of financial, operational, and market-driven factors that determine how much a business is worth. Whether you are an entrepreneur, investor, or corporate executive, understanding these factors is crucial for making informed financial and strategic decisions.

For a company owner, valuation is a reflection of years of dedication, innovation, and strategic decisions. It is the tangible measure of their vision realized, a benchmark for future growth, and often, the key to unlocking the next phase of their entrepreneurial journey. Whether preparing for a funding round, considering a merger, or simply understanding the business' intrinsic worth, a clear grasp of valuation drivers is paramount.

For an investor, valuation is the cornerstone of due diligence and return on investment analysis. It is the lens through which they assess a company's potential, weigh its risks, and determine the viability of their capital commitment. Investors meticulously examine various metrics, from revenue projections to market share, to ascertain if a company's asking price aligns with its actual and future performance.

In this blog, we will break down the key factors shaping the company’s valuation, explaining how they impact business worth and why both company owners and investors need to pay close attention to them. 

Company valuation from an owner’s perspective

As a business owner, you need to understand your company's worth for reasons such as raising capital, selling the business, bringing in investors, or strategic planning. Owners often focus on methods that highlight the company’s financial health, growth potential, and intrinsic value.

Key Valuation Methods

• Earnings-based valuation. This encompasses the discounted cash flow (DCF) analysis, which determines value based on projected future cash flows, and the capitalization of earnings through which owners divide current earnings by a capitalization rate (rate of return expected by investors).
• Market-based valuation. It includes the comparable company analysis (CCA) which compares the business to similar companies in the industry based on valuation multiples.
• Asset-based valuation. This valuation is based on the net asset value (NAV) and liquidation value. NAV is suitable for asset-heavy businesses such as real estate or manufacturing, helping owners calculate total assets minus liabilities. Meanwhile, liquidation value determines the company’s worth if all assets are sold. It is often used for worst-case scenarios like bankruptcy.

To maximize valuation, owners should strategically emphasize their company's growth potential and distinct competitive advantages, while simultaneously maintaining strong financial records and reducing liabilities. Furthermore, if seeking investor capital, it is imperative to demonstrate clear scalability and a proven path to profitability, as these factors are paramount in attracting and securing favorable investment terms.

Company valuation from an investor’s perspective

Investors look at valuation differently as they focus on return on investment (ROI), risk, and growth potential. Their goal is to assess whether a company is undervalued, fairly valued, or overpriced before investing.

Key Valuation Methods

• Price-to-earning (P/E) ratio which compares the company’s stock price to its earnings per share (EPS). Investors use it to determine if a stock is overvalued or undervalued compared to competitors.
• Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This method measures overall business value, including debt, and is usually used to compare businesses across industries.
• Discounted cash flow (DCF) analysis. Investors use DCF to evaluate the future cash flow potential before making investment decisions.
• Dividend discount model (DDM). It values a company based on expected future dividends and discount rates.
•  Risk-based evaluation. Investors assess factors like industry trends, management efficiency, and market risks. They also evaluate a company’s competitive advantage, such as strong branding, customer loyalty, or cost leadership.

Finally, understanding the company’s valuation is essential for both business owners and investors. It helps owners attract funding, negotiate better deals, and plan for growth, while investors use it to assess risks and identify profitable opportunities. A well-informed valuation ensures smarter financial decisions and long-term success in a competitive market.

Ghada Ismail

Getting your pricing right is one of the toughest calls a founder has to make and it can make or break your business. Set the price too high, and you risk pushing customers away. Go too low, and you may struggle to cover costs or risk being seen as cheap. Finding that sweet spot is crucial, yet many startups stumble here.

The Danger of Overpricing

Overpricing can easily turn potential customers away. If people feel your product isn’t worth the price, they’ll look elsewhere. This is especially risky for startups trying to build a customer base. Higher prices can also raise expectations, and if your product or service doesn’t exceed those expectations, it can hurt your brand.

One common mistake is pricing based solely on costs without considering the customer's perception of value. Customers don’t just evaluate the price; they weigh it against what they believe they’re getting in return. Overpricing without adding value can leave your business looking out of touch. 

The Pitfalls of Underpricing

On the other side, pricing too low can backfire. While it might seem like a great way to win customers early on, underpricing can leave you with little margins or even losses. Worse still, customers might assume your product isn’t up to par. And once you've set those low prices, bumping them up later without upsetting loyal customers can be tricky.

Underpricing can also create a perception problem. Customers may wonder, "Why is this so cheap?" and assume it lacks quality or staying power. For instance, a bakery pricing its cakes below market rates may attract bargain hunters but struggle to establish itself as a premium dessert destination.

Finding the Sweet Spot

The key to good pricing is understanding your costs, knowing your market, and figuring out what customers are willing to pay. Many successful startups use a value-based pricing model, which ties your price to the perceived benefits your product offers. This strategy can help position your offering as worth the investment without scaring off price-conscious buyers.

Market research is crucial here. Founders should analyze competitors, survey potential customers, and study buying behaviors to gauge what their audience is willing to pay. Testing different price points or offering tiered options can also provide insights into what drives sales without scaring off leads. This means creating multiple pricing plans or packages that cater to different customer needs and budgets. For example, a SaaS startup might offer:

Basic Plan: A lower-cost option with essential features for entry-level users.

Standard Plan: A mid-tier package with additional features for growing businesses.

Premium Plan: A higher-priced option with advanced features, dedicated support, or exclusive perks.

This strategy allows customers to choose what best fits their needs, while giving your business opportunities to upsell as users grow or require more value. Tiered pricing is common in tech, subscription services, and even physical products with 'starter,' 'pro,' or 'deluxe' options.

Testing and Adapting

Pricing isn’t something you set and forget. Early-stage businesses should experiment with different pricing models, keep an eye on customer reactions, and adjust accordingly. Special offers, discounts, or premium tiers can help you figure out what resonates best with your audience.

Many successful startups approach pricing as an ongoing process. They gather customer feedback, analyze trends, and adjust their prices when necessary. Some introduce loyalty programs or bundle offers to increase perceived value without directly raising prices. By staying flexible and responsive, startups can adjust their pricing over time.

Wrapping things up…

Pricing mistakes are common, but they’re fixable. By staying tuned into customer feedback and making thoughtful adjustments, you can find a price point that reflects your product’s value and keeps your business sustainable. But even with great pricing, poor execution can derail everything. In the next episode, we'll dive into how operational chaos can drag startups down and what founders can do to keep things running smoothly.

Ghada Ismail

Kuwait's largest online classifieds platform, 4Sale, has become a household name in the region's digital marketplace landscape. Spearheading the platform's technological evolution is Khaled Gomaa, Chief Technology Officer at 4Sale. 
 

A seasoned tech leader with 16 years of experience across all stages of business growth, Khaled has a strong passion for creating products that drive business value. He founded his first company at 18 years old and has since contributed to various technology-driven projects, including social media, marketplaces, AdTech, LegalTech, chatcommerce, and e-commerce sectors.
 

Throughout his career, Khaled has worked with systems and platforms handling billions of requests, and startups searching for the optimum product-market fit; providing him with vast experience in developing solutions meeting corporate and customer goals.
 

In this exclusive interview, Khaled shares insights into the platform's journey, its most popular features, and how it has evolved to meet changing consumer expectations. He also discusses 4Sale's innovative use of emerging technologies like AI and machine learning, while offering valuable advice for aspiring tech entrepreneurs in the region.

1.    For those who might not be familiar, can you share the story behind 4Sale and what inspired its creation?

4Sale was founded by our CEO - Tarek Sakr – in 2014, following his memorable – but incredibly frustrating - consumer experience, many years ago, of attempting to purchase a second-hand car in Kuwait.

He found the experience so challenging and non-user-friendly that it sparked an entrepreneurial idea. He took a particular interest in subsequently researching the then-embryonic online car sales market – before launching his own website. This grew into what is now Kuwait’s largest online classifieds platform – a platform where people come together to buy and sell goods and services.

Since its inception, 4Sale has supported over 2 million registered users in listing 14 million items and services. Over 7 million devices have accessed the platform through app downloads or website registrations, driving 30 million page views each month.

Trading is a way of life in Kuwait, and creating an online, localized marketplace was a compelling opportunity. Tarek believed technology could capitalize on these cultural strengths and – with online classifieds - there are also virtually no restrictions on product categories to integrate into the business model.

We are committed to the power of personalization. By using cutting-edge technology, we customize our products to match each user’s unique preferences, creating a seamless and tailored shopping experience. Our mission is clear: to make it easy for individuals to find and access the products they love.

2.    What categories or features are currently the most popular on 4Sale, and why do you think they resonate so well with users?          

Consumer tastes often shift with the seasons and annual events. For example, during Ramadan, our platform sees a major surge in gift sales, amid increased demand for items such as Misbah. This year - we expect the same pattern. Among the top five gifts in Kuwait were watches, Misbah, pens, leather bags, and wallets—each symbolizing enduring elegance and practicality.

Given 4Sale’s heritage in automotive, it is a core part of our DNA and remains one of the most popular verticals on our platform. Last year, our dominance was further cemented via partnerships with car dealerships.

In addition to that, our Contracting vertical grew 7% in revenue year over year, demonstrating shows how we're driving more customers to our service providers, boosting their business and their confidence in our platform.

3.    How has the platform evolved to meet the changing expectations of users over the years?    

We know—by paying close attention to the data—that today’s customers desire (i) highly specific, tailored interactions, (ii) to be genuinely understood, and (iii) easy and seamless access to purchases. By refining our processes through data collection, we can offer timely, relevant recommendations that create a more personal and enjoyable customer experience.

In this context, people are using the platform as a price reference; it has become essential for knowing what is sold where.

This evolution has also allowed local businesses to gain increased visibility—whether offline or online—by highlighting their services and showrooms, including certified listings from trusted sources offered by 4Sale.

As our rapid growth continues, we will scale up our entire infrastructure in line with our 2025 goal of reaching two million monthly active users across additional verticals. This would represent an impressive market share in a country of just five million people—and our infrastructure will be ready for it.

4.    In your opinion, what makes classifieds and e-commerce platforms like 4Sale essential in today’s economy?
People will always trade, even if their methods change. As digitization has increased, we have led in technology. Today’s customers also want effortless experiences - be it buying or selling – and we simplify the buying and selling process for users. Our cutting-edge technology powers advanced algorithms so the process is as tailored and easy as possible.

5.    Are there any new products or features in the making to be launched soon?

We are continuously working on new features and are currently preparing some very exciting updates to enhance our primary verticals—automotive and real estate.  These updates will allow users to compare prices and know more about the availability of products, as we are committed to helping service providers gain more market visibility in Kuwait. Obviously, we can’t reveal too much right now - but stay tuned!

6.    How do you see emerging technologies like AI, blockchain, or Web3 shaping the future of marketplaces like 4Sale?

We already use GenAI to identify distinct user groups based on demographics, behavior, cultures, nationalities, and preferences, enabling tailored marketing campaigns for events and cultural festivals. This approach enhances the overall customer experience by considering their interests, pastimes, hobbies, and collections.

We are also enhancing our machine-learning-driven content moderation system. A key challenge we are tackling involves customers either (i) unintentionally providing incorrect ad details or (ii) misusing the ad modification feature. For example, when users edit their listings, they may significantly alter the content—at times, effectively creating an entirely new ad under the guise of an update.

To mitigate this, we are developing a model that evaluates ad modifications, determining whether changes are routine or substantial enough to require blocking. Additionally, the model helps filter inappropriate content across text, images, and other media, ensuring our platform maintains high-quality standards.

As you can see, the use cases of AI are very broad, and we are excited about these developments. They will enhance marketplaces, making them increasingly appealing to customers.

7.    What’s your vision for 4Sale’s future, within Kuwait?
We want to increase the number of verticals we operate in – having now expanded to 197 categories. We will continue to drive innovation - elevating our technology to maintain (and enhance) our status as the leading classifieds service in Kuwait.
As a highly trusted brand that is integrated into users’ everyday behavior, we also want to get closer to transactions and offer even more value-added services during those transactions.  This includes a strong focus on business sustainability for our service providers, helping them get more customers and visibility.
If we can keep doing all these things, as we have been doing, then the future will be very exciting.

8.    Is there anything you’d like to share with aspiring tech entrepreneurs or those looking to create similar platforms in the region?  

I'd start by saying that instead of building from scratch, focus on optimizing and improving what already exists to accelerate development, control costs, and enhance reliability. This approach is crucial for capitalizing on the incredible pace of technological advancements in our region, which has enormous growth potential that can benefit from these developments. This situation is both a privilege and a responsibility. Entrepreneurs need to be hardworking, thoughtful, and creative to capitalize on these trends. Hard work pays off—just be patient and keep going.
 

Kholoud Hussein 

In the dynamic landscape of startups, legal and compliance services play a pivotal role in shaping the trajectory of emerging businesses. These services not only safeguard startups from potential legal pitfalls but also enhance their credibility among investors, partners, and customers. As part of our series, "Building Blocks of Startup Success: The Industries Powering Innovation," this article delves into the profound impact of legal and compliance services on startups, supported by recent statistics and insights from Saudi business owners.

The Crucial Role of Legal and Compliance Services

Legal and compliance services encompass a broad spectrum of activities designed to ensure that businesses operate within the boundaries of the law. For startups, these services are integral in establishing a solid foundation, mitigating risks, and fostering sustainable growth. Key areas include:

• Business Formation and Structuring: Selecting the appropriate legal structure (e.g., sole proprietorship, partnership, LLC) is fundamental, as it influences taxation, liability, and regulatory obligations.
• Regulatory Compliance: Adherence to industry-specific regulations is essential to avoid legal repercussions and maintain operational legitimacy.
• Intellectual Property Protection: Safeguarding innovations, trademarks, and patents is vital for maintaining competitive advantage and preventing infringement disputes.
• Contract Management: Drafting and reviewing contracts with clients, suppliers, and employees to ensure clarity and enforceability.
• Employment Law: Complying with labor laws to foster fair workplace practices and prevent legal disputes.

Financial Implications of Compliance

Investing in legal and compliance services incurs costs; however, non-compliance can lead to far more substantial financial setbacks. A 2023 report by NorthRow highlighted that, on average, 25% of business revenue is allocated to compliance costs, with 18% of businesses estimating that over 50% of their revenue is dedicated to these expenses.

While these figures may seem significant, the cost of non-compliance—including fines, legal battles, and reputational damage—can be exponentially higher. However, companies that improved their internal controls experienced much lower borrowing costs, ranging between 0.5 to 1.5 percentage points, indicating a favorable cost-benefit balance. 

Legal Compliance in the Saudi Startup Ecosystem

Saudi Arabia's Vision 2030 has catalyzed a burgeoning startup ecosystem, with legal and compliance services playing a critical role in this transformation. The Kingdom has introduced transformative regulations aimed at simplifying business processes, such as commercial registration and trade name management, making it more accessible for entrepreneurs to establish and operate businesses. 

The Saudi Small and Medium-Sized Enterprises General Authority, Monshaat, has been instrumental in fostering entrepreneurship by setting policies and organizing forums like Biban, which connect entrepreneurs, investors, and officials globally. The modernized regulatory landscape simplifies startup and venture capital operations, including a streamlined business registration process and the new Saudi Companies Law, effective January 2023. 

Insights from Saudi Business Leaders

Saudi business owners recognize the indispensable role of legal and compliance services in ensuring business continuity and success. Nasreen Alissa, founder of The Law Firm of Nasreen Alissa, emphasizes that compliance not only protects startups from legal risks and penalties but also builds their reputation and trustworthiness among customers, partners, and investors. 

Such insights underscore the consensus among Saudi entrepreneurs regarding the value of robust legal frameworks in fostering sustainable business growth.

Challenges and Considerations

Despite the clear benefits, startups often encounter challenges in implementing effective legal and compliance strategies:

• Resource Constraints: Allocating sufficient funds and personnel to manage compliance can be challenging for startups with limited resources.
• Complex Regulatory Landscapes: Navigating the intricate web of local and international regulations requires specialized knowledge and continuous updates.
• Rapid Technological Advancements: Keeping pace with evolving compliance requirements, especially in tech-centric industries, necessitates agility and adaptability.

To address these challenges, startups are increasingly leveraging technology. Artificial intelligence (AI) startups offer compliance software to help organizations manage new regulations efficiently and cost-effectively. While this technology can automate tasks like fraud reviews and data security reports, compliance executives remain cautious. Concerns include the potential for errors, lack of clear guidelines, and the effort required to implement AI. Despite some hesitancy, companies are largely moving forward with AI to model risk scenarios and automate repetitive tasks. 

Finally, legal and compliance services are foundational to the success and longevity of startups. They not only shield businesses from potential legal entanglements but also enhance credibility, attract investment, and facilitate sustainable growth. In the context of Saudi Arabia's evolving startup ecosystem, these services are indispensable in navigating the regulatory landscape and capitalizing on emerging opportunities. By prioritizing legal compliance, startups can build a resilient foundation, paving the way for innovation and long-term prosperity.

As we continue our series, "Building Blocks of Startup Success: The Industries Powering Innovation," our next installment will explore the significance of mentorship networks in guiding startups to success. These networks provide invaluable support, knowledge, and connections, enabling startups to navigate challenges and accelerate growth. Stay tuned as we delve into how mentorship fosters entrepreneurial success and contributes to a thriving startup ecosystem.

Ghada Ismail

Many startups enter the market believing that a great product alone will guarantee success. However, statistics tell a different story. According to CB Insights, 14% of startup failures are directly linked to poor marketing. Even with a stellar product or service, startups that fail to connect with their audience risk being overlooked. Without effective marketing, businesses remain invisible in a crowded marketplace, and potential customers never learn about what they offer.

The Importance of Effective Marketing from Day One

From the moment your business launches, marketing should be a priority. Visibility is key, and early-stage startups must work actively to connect with their target audience. Without marketing, potential customers won’t know you exist, no matter how valuable your offering may be. A clear marketing strategy not only drives sales but also builds brand identity and customer trust.

Common Early-Stage Marketing Mistakes

New businesses often make avoidable marketing missteps that limit their growth:

• Ignoring the Target Audience: Some founders market to everyone rather than defining a clear customer profile. Without understanding who you're trying to reach, your messaging may fall flat.
• Relying Too Heavily on Word-of-mouth: While positive referrals are powerful, they shouldn't replace proactive marketing efforts. Relying solely on organic buzz often slows growth.
• Neglecting Digital Presence: In today’s digital world, lacking an online presence is a critical mistake. A simple, well-structured website and active social media presence are essential.
• Trying Too Many Strategies at Once: Some startups attempt to market through multiple channels simultaneously without focusing on what works best. Concentrating on a few effective platforms often delivers stronger results.

Low-Budget Marketing Strategies That Work

Effective marketing doesn’t have to break the bank. Here are proven strategies that startups can implement without significant costs:

• Content Marketing: Sharing valuable content through blogs, videos, or social media can position your brand as an authority in your field. Consistency is key.
• Social Media Engagement: Platforms like Instagram, LinkedIn, and TikTok offer cost-effective ways to connect directly with your audience. Engaging content and authentic interactions build loyal followings.
• Email Marketing: Regular newsletters with updates, offers, or insights help nurture leads and maintain customer interest.
• Partnerships and Collaborations: Teaming up with complementary businesses can expand your reach without hefty expenses.
• Community Involvement: Attending local events, hosting workshops, or participating in industry forums can generate buzz and build meaningful connections.

Wrapping things up...

Marketing isn’t just an accessory to your product, it’s rather an essential factor for survival. Research shows that startups that actively engage in targeted marketing campaigns are significantly more likely to gain traction early on. By identifying your target audience, avoiding common pitfalls, and leveraging budget-friendly strategies, you can build momentum and increase your chances of long-term success. 

In the next episode of this series, we'll dive into another key challenge for startups ‘Pricing Problems: Too High, Too Low, or Just Wrong’, exploring how pricing mistakes can undermine even the most promising startups. Stay tuned!

Kholoud Hussein 

In recent years, Saudi Arabia has undergone a remarkable transformation in women's empowerment, particularly in the technology sector and entrepreneurship. This shift aligns with the Kingdom's Vision 2030, aiming to diversify the economy and reduce dependence on oil revenues. On this International Women's Day, we celebrate the significant contributions of Saudi women in technology and entrepreneurship, highlighting the Kingdom's efforts to become a global pioneer in enabling women.

Historical Context of Women's Empowerment in Saudi Arabia

Historically, Saudi women faced numerous challenges in accessing education and employment opportunities. However, the past decade has witnessed substantial reforms aimed at enhancing women's rights and participation in various sectors. The lifting of the driving ban in 2018 and the easing of male guardianship laws have been pivotal in granting women greater autonomy and mobility. These changes have paved the way for increased female participation in the workforce, particularly in sectors traditionally dominated by men.

Women's Participation in the Workforce

The Saudi government's initiatives have led to a significant rise in women's employment. As of the second quarter of 2024, women's participation in the labor force reached 35.8%, surpassing the government's target ahead of schedule. This surge is evident in various industries, including manufacturing, where women are now integral to operations. For instance, at Johnson Controls Arabia, an air-conditioning plant, women like Rawan al-Harbi are contributing to roles traditionally held by men, reflecting the shifting dynamics in the workforce.

Saudi Women in the Technology Sector

In recent years, Saudi women have transitioned from being beneficiaries of empowerment programs to active leaders in the technology sector. Their role in shaping the digital economy is evident through impressive participation rates and success stories.

Key Figures Highlighting Women’s Impact in Tech:

• 28% of Saudi entrepreneurs in the digital economy are women, a significant achievement that showcases their increasing role in the industry.
• 70,000+ Saudi women have benefited from training programs focused on emerging technologies, equipping them with the necessary skills to compete in the global tech sector.
• 35% of employees in the technical sector are now women, reflecting the growing inclusivity in STEM (Science, Technology, Engineering, and Mathematics) fields.
• 52% of Saudi women now hold jobs in the digital economy, marking a substantial increase in workforce participation.

Educational Initiatives

Saudi universities have been instrumental in promoting women's education in technology. The establishment of the Princess Nourah bint Abdulrahman University, the largest women's university globally, offers various STEM programs, fostering a new generation of female tech professionals. Additionally, collaborations with international institutions have provided Saudi women with exposure to global best practices and emerging technologies.

Professional Contributions

Saudi women have made significant strides in the tech industry, taking on roles as software developers, data analysts, and IT consultants. Their involvement has been pivotal in driving innovation and contributing to the Kingdom's digital transformation. Companies such as Aramco and STC have reported an increase in female employees in their IT departments, reflecting a broader trend of gender diversity in the sector.

Leadership and Recognition

Prominent Saudi women have emerged as leaders in technology, earning national and international recognition. Figures like Hoda Al-Ghoson, former Executive Director of Human Resources at Aramco, have been instrumental in advocating for women's inclusion in technical fields. Their achievements serve as inspiration for aspiring female tech professionals in the Kingdom.

Women's Role in Entrepreneurship

Entrepreneurship has become a viable avenue for Saudi women to contribute to the economy, with supportive ecosystems fostering their ventures. The number of female entrepreneurs has increased by over 35% in the last decade, indicating a positive trend toward gender parity in business ownership. 

Government and Private Sector Initiatives Driving Change

The Saudi government has launched several programs to support female entrepreneurs. The General Authority of Small and Medium Enterprises (Monshaat) offers loan guarantee programs and has implemented regulations to reduce administrative burdens on SMEs. Additionally, the Badir Technology Incubators and Accelerators Program provides workshops and training to promote an entrepreneurial culture among women university students. 

The remarkable progress of Saudi women in tech is no coincidence—it is the result of well-structured policies and initiatives. Under Vision 2030, the Saudi government has made gender inclusivity a national priority, introducing numerous programs to facilitate women’s entry and leadership in the digital economy.

Key Initiatives Supporting Women in Tech and Entrepreneurship:

1. “Women in Tech” Training Programs – These initiatives provide technical training, mentorship, and career development opportunities for Saudi women in fields such as AI, cybersecurity, and software development.
2. The Saudi Digital Academy – Established to enhance digital skills among women and empower them to take on leadership roles in the tech industry.
3. Government-Backed Funding for Women-Led Startups – Programs such as Monsha’at and the Saudi Venture Capital Company (SVC) are supporting female entrepreneurs in launching and scaling their businesses.
4. Inclusion of Women in Major Tech Companies – Leading Saudi tech firms, including STC, NEOM, and Aramco Digital, have actively increased female recruitment and leadership roles within their organizations.

These initiatives are not only enabling Saudi women to participate in the workforce but are also positioning them as key drivers of the country’s digital transformation.

Access to Funding

Access to capital has historically been a barrier for female entrepreneurs. However, recent reforms and initiatives have improved funding opportunities. Banks and financial institutions are now offering tailored financial products to support women-led businesses. Moreover, venture capital firms are increasingly recognizing the potential of female entrepreneurs, leading to more investment in women-led startups.

Success Stories

Several Saudi women have established successful businesses, serving as role models for aspiring entrepreneurs. For instance, Alhanoof Alzahrani, co-founder of Scopeer, Saudi Arabia's first crowdfunding company, has expressed optimism about the opportunities available to women in business. She stated, "Amid the economic diversification and push for women's empowerment, opportunities are everywhere. You just must be creative and willing to take risks."

Saudi Arabia as a Global Pioneer in Enabling Women

Saudi Arabia’s commitment to gender inclusivity has gained international recognition. The Kingdom has taken bold steps to lead global efforts in empowering women, particularly in the digital and economic sectors.

Major Achievements & Global Recognition:

• Saudi Arabia to Chair the UN’s Commission on the Status of Women (CSW) in 2025, reinforcing its role in shaping global policies on gender equality.
• Launch of the “Empower” Alliance during Saudi Arabia’s G20 Presidency, promoting female leadership in the private sector.
• Riyadh Named the Capital of Arab Women (2020), recognizing Saudi efforts in advancing women’s rights and economic participation.
• Saudi Women’s Inclusion in Key Sectors: The Kingdom has prioritized women’s participation in high-impact industries, including ICT, finance, and entrepreneurship.

Key Statistics on Women’s Workforce Participation in Saudi Arabia:

• 54.5% of Saudi women are now engaged in economic activities, a sharp rise from previous years.
• 40.6% of leadership roles in government and private sectors are held by women.
• 35.4% of Vision 2030 employment targets for women have already been achieved, ahead of schedule.

Policy Reforms

The Kingdom has implemented several policy changes to promote gender equality. These include allowing women to travel without male guardianship, granting them the right to register births, marriages, and divorces, and providing equal access to employment opportunities. These reforms have significantly enhanced women's autonomy and participation in public life.

International Recognition

Saudi Arabia's progress in women's empowerment has garnered international attention. The Kingdom's efforts align with global initiatives to promote gender equality, such as the United Nations Sustainable Development Goals. By championing women's rights and participation, Saudi Arabia is setting a precedent for other nations in the region to follow.

Challenges and the Road Ahead

Despite Saudi Arabia’s remarkable progress in empowering women, several challenges remain on the path to full gender equality in the workforce, technology sector, and entrepreneurship. Addressing these challenges will be crucial to sustaining the momentum and ensuring that Saudi women continue to thrive in their careers and businesses.

Cultural and Social Barriers

While societal perceptions of women in the workforce have evolved significantly, traditional views on gender roles still pose challenges in some industries. In certain conservative circles, there remains resistance to women holding leadership positions or working in mixed-gender environments. However, government-backed awareness campaigns and the increasing visibility of successful Saudi women in various fields are gradually changing these perceptions.

Access to Funding and Investment for Women Entrepreneurs

Although funding opportunities have improved, women-led startups still face more difficulties in securing venture capital and business loans compared to their male counterparts. According to recent reports, women entrepreneurs in Saudi Arabia receive only a fraction of total VC funding, a challenge seen globally. Initiatives such as Monshaat’s loan guarantee programs and the introduction of women-focused investment funds are promising steps toward bridging this gap.

Balancing Work and Family Responsibilities

A common challenge faced by women worldwide, including Saudi Arabia, is balancing professional aspirations with family responsibilities. While Saudi labor laws now offer more flexibility, including extended maternity leave and remote work options, further advancements such as subsidized childcare facilities and enhanced parental leave policies can further support working women.

Encouraging More Women in STEM and Tech Leadership

Although Saudi Arabia has made great strides in promoting women’s participation in STEM fields, there is still a gap in the number of women reaching senior leadership positions in the technology industry. Tech giants and startups alike must continue to prioritize mentorship programs, networking opportunities, and leadership training to equip women with the skills and confidence to take on executive roles.

Looking Forward: Sustaining the Momentum

Saudi Arabia has positioned itself as a regional leader in women’s empowerment, but continued progress requires ongoing reforms, investment, and cultural shifts. Government policies must evolve alongside economic and societal changes to ensure that women are fully integrated into the Kingdom’s ambitious Vision 2030 goals. By addressing existing challenges, Saudi Arabia can further cement its status as a global model for gender inclusivity and economic transformation.

A Future Driven by Women’s Success

As we celebrate International Women’s Day, Saudi Arabia’s strides in empowering women in technology, entrepreneurship, and the broader economy are undeniable. Women in the Kingdom contribute to economic diversification and shape the future of industries once dominated by men. With strong government support, shifting societal norms, and the growing presence of female role models, the path forward is promising.

However, sustaining this progress requires continued investment in education, funding opportunities, and leadership development to ensure that women are not just participants but key drivers of Saudi Arabia’s economic future. The Kingdom’s journey inspires the region and beyond, proving that when women are empowered, economies thrive.